« Ethanol Is Insufficient Fuel Source | Home | Mascoma Building Ethanol Empire »
The Many Evils Of Ethanol
By Mr Ethanol | March 3, 2008
Mises Economics Blog:
This MSNBC article notes how the price of wheat is being driven up not just by the devaluation of the dollar, but by “increased demand” for ethanol.
The article fails to mention that the demand for ethanol has not just magically increased on its own, but has increased only because massive government subsidies have made it more relatively attractive. Nor does it mention that ethanol is also now much more attractive to farmers because it receives fat subsidies that wheat-growing does not receive.
The result has been massive distortion in the market, causing a flight from other grains into corn, producing smaller supplies and thus higher prices for the other grains such as hops and wheat.
Corn for food has become much more expensive as well, and in Mexico the price of tortillas has skyrocketed because in the North American market, corn is now being grown for (subsidy rich) ethanol and not for food. Read full post.
Related Posts
- No related posts
New Way Of Making Easy Money Online